MTF regularly publishes major reports on a wide variety of state fiscal and economic issues. In-depth analyses of the state budget and of local government finances are produced annually, a legislative directory is issued for each two-year legislative session, and interstate comparisons of taxes and business costs are updated periodically. MTF also publishes reports on a range of other topics of special interest, such as the Commonwealth's capital finances and the performance of the state's economy.

MTF's most recent major reports are described below. The news release that accompanies each report may be viewed by clicking the link following each summary. There is a modest charge for the reports themselves, which can be ordered by printing and mailing the order form available on this site, or by contacting the Foundation at (617) 720-1000.

The news releases are in Portable Document Format (PDF). Viewing them requires Adobe Acrobat Reader, which can be downloaded free of charge from Adobe's website.

A variety of factors is placing ever greater pressure on the finances of most cities and towns with little relief in sight, according to the Massachusetts Taxpayers Foundation's 37th annual analysis of local revenues and spending.

The 2007 tax rates on pages 64-69 have been updated (see addendum).

Massachusetts employers will spend an estimated $175 million a year for additional employee coverage under the state's health care reform law, according to a report released by the Massachusetts Taxpayers Foundation. The report analyzes the broad scope of employer participation that is critical to the success of Massachusetts health care reform.

On October 25 the Foundation released a report analyzing the revenue projections included in the administration's plan to license three casinos in Massachusetts. The detailed analysis raises a variety of questions about the revenues and benefits from the three casinos, including an assessment of the impact on property taxes and transportation needs.

Cities and towns across the Commonwealth can save as much as $750 million in 2013 and $2.5 billion in 2018 by taking advantage of a new law that allows them to join the Group Insurance Commission (GIC), the state agency which administers health insurance for state employees, according to a joint report by the Foundation and the Boston Municipal Research Bureau. The report is the first ever to quantify the potential savings in joining the GIC.

The overall municipal financial picture stabilized in 2006. Nevertheless, most communities continue to face a fiscal squeeze as underlying costs grow faster than revenues, according to the Foundation’s 36th annual analysis of local revenues and spending.

Total local revenues rose 4.7 percent in 2005 and 5.3 percent in 2006 – double the rate of 2003-2004 during the state's fiscal crisis but well below the 6.3 percent average annual growth in the 1997-2002 period.

The growth in property taxes slowed slightly to a state average of 5.3 percent in 2006, compared to an average annual increase of 6.1 percent in the 2001-2004 period. Inflation adjusted growth was flat. While this slowdown offered some relief, many cities and towns approved overrides which resulted in much larger increases.

As a fraction of all local revenues, the contribution from property taxes rose to 53 percent in 2006; this is the highest level yet and a continuation of a sustained upward trend since 1982. At the same time, growth in revenue from fees and charges continued to outpace the growth from all other sources, up a staggering 7.9 percent in 2006.

Local expenditures tracked revenues, growing 5.4 percent in 2006, approximately double the rate in 2004 but barely keeping pace with inflation. Given the large annual increases in health care costs facing cities and towns, holding the growth in spending to the rate of inflation requires most communities to reduce programs or services, with little opportunity to restore those cuts that took place during the state's fiscal crisis.

The state needs to take two steps to place local finances on sounder financial footing over the long-term:
- giving local officials greater authority to manage health care costs;
- steadily increasing the share of tax revenues going for local aid.

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November 2006.

In its annual review of state finances, the Foundation cautions that while the Commonwealth is in its third year of financial recovery, the state’s leaders now face the challenge of choosing from a long list of competing funding priorities that far exceed the state’s ongoing fiscal capacity.

In its annual review of state finances, the Foundation cautions that while the Commonwealth is in its third year of financial recovery, the state’s leaders now face the challenge of choosing from a long list of competing funding priorities that far exceed the state’s ongoing fiscal capacity.

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In its annual review of state finances, the Taxpayers Foundation warns that largely uncontrollable growth in spending for core programs is outpacing the revenue growth that can be expected to be generated by the state’s economy and tax base over the long term, leaving next to nothing for restoring budget cuts, funding new initiatives, or cutting taxes. The result “growth gap” will sharply limit the Commonwealth’s fiscal flexibility for the foreseeable future—despite the widespread perception that improving revenues signal the end of the state’s fiscal woes.

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Cities and towns are facing a combination of higher property taxes and employee layoffs as a result of cuts in state aid, according to the Foundation’s 34th annual analysis of local revenues and spending. Although the 2005 state budget provides modest relief from the recent deep cuts in aid, total assistance to municipalities remains below pre-crisis levels in most Massachusetts communities. Given the structural deficit in the state budget that is expected to grow to almost $1 billion in 2006, the report concludes that communities should count on limited additional state dollars over the next several years. In addition to an analysis of overall trends in local finances, the report includes financial data and property tax rates for every city and town in the Commonwealth. 75 pages. October 2004.

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In a major report released today, the Massachusetts Taxpayers Foundation called on state leaders to remove a series of financial and bureaucratic obstacles to educational excellence at the University of Massachusetts.

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In this major report, MTF calls on the Governor and the Legislature to reform the state’s transportation agencies to produce more comprehensive and integrated priority setting, to enhance the state’s capacity to finance transportation investments, and to strengthen the Commonwealth’s ability to operate and maintain its transportation assets. The report, prepared in collaboration with the Artery Business Committee, analyzes key issues that need to be considered in evaluating restructuring proposals and raises a number of questions about the proposed merger of the Massachusetts Turnpike Authority and the Highway Department. 24 pages.

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The Foundation gratefully acknowledges the generous support of State Street Corporation for underwriting the printing costs of this Directory. To obtain one free copy, please send a self addressed business sized envelope with $1.00 postage. For information on how to obtain more than one copy, call the Foundation at (617)720-1000.

View Addendum

April 2003.

According to the Foundation, the state faces a budgetary shortfall of $2.4 billion in 2004, with reserves largely depleted. The predicted shortfall is occurring despite almost $1 billion of tax increases enacted last year, spending cuts approaching $2 billion over the last 18 months, and the expectation that the state economy will begin to recover in fiscal 2004. MTF concludes that given the sheer size of the structural deficit -- and the limited options remaining for closing the gap -- the state's fiscal problems cannot be adequately addressed in a single budget year. View Report

February 2003.

February 2003.

October 2002.

February 2002.

In a unique collaborative report, MTF and the United Way call for several major changes in the state's welfare program to help recipients achieve long-term economic independence and self- sufficiency, a goal that serves the interests of families, employers and taxpayers. The primary recommendation of the report is to include education and training programs within the work requirement while increasing the requirement from 20 to 30 hours per week. The report's reforms are designed to help recipients obtain better paying jobs so that they are no longer dependent on taxpayer-supported programs such as Medicaid and food stamps, and instead become contributing taxpayers themselves.

The report's executive summary can be read on this site and the news release can be found through the link below. The full report can be ordered using the request form found through the appropriate link below. 61 pages. April 2001.

In its annual report on state spending, MTF reports that with tax collections weakening precipitously, achieving a balanced state budget for fiscal 2002 is likely to be the most difficult financial challenge in a decade. The report highlights three major trends which are converging to dramatically change the state's fiscal landscape: a sharp drop in the rate of growth of tax revenues amid widespread signs of a slowing economy; the phasing in of the Governor's $1.2 billion income tax cut, as well as another $600 million of previously approved tax cuts; and rapidly escalating health care costs and other nondiscretionary items. In sharp contrast to the fiscal plenty of recent years, the state is now facing the prospect of much tighter finances over the next several years. The report also provides an overview of spending trends in the major areas of state government. 38 pages. January 2001.